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UK Tax Industry Seeks Certainty Over Car-Charging Tax Perks

by Amanda Banks,, London

18 January 2018

Tax professionals in the UK have called on the tax authority, HM Revenue and Customs, to clarify plans for a tax exemption for employer-provided electric car charging facilities, including details of any exclusions or exceptions.

At the Autumn Budget 2017, it was announced that, from April 2018, there would be no benefit-in-kind charge on electricity that employers provide to charge employees' own electric vehicles. The Government has yet to legislate for the changes.

The Association of Tax Technicians said it has been told by HMRC that provisions for the measure will be included in the next planned Finance Bill, to be announced and published in the autumn of 2018. The legislation will be retrospective so that the tax exemption applies from April 6, 2018, the ATT said.

Yvette Nunn, Co-chair of ATT's Technical Steering Group, said: "The delay in legislating for this exemption puts both employers and employees in an uncertain position because it will come into force before they see any of the details. It would be a pity if this initiative to increase the use of electric cars falls flat because some employers are unaware of how to apply it or promote it due to a lack of information. There is also the risk that employers and employees may not be aware of this initiative, which means it does not get used."

"The ATT is urging HMRC to provide guidance to employers and employees as soon as possible so that they can have certainty over the tax treatment of employer-provided charging from the start of the tax year. This should include a commitment to an effective date of April 6, 2018, together with as much detail as possible on any potential exclusions or conditions. Providing early clarification could accelerate employers' plans to install charging facilities and employees' choosing to purchase electric vehicles."

TAGS: Finance | tax | employees | United Kingdom | tax authority | professionals | legislation | Tax

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